WEBVTT BITCOIN. 34-YEAR-OLD ROBERT SWAIN A COURT CONVICTED OF CONSPIRACY TO COMMIT MONEY LAUNDERING, A CRIME THAT CARRIES UP TO 20 YEARS IN PRISON. HE AND ANOTHER BALTIMORE COUNTY MAN PLEADED GUILTY IN FEDERAL COURT. HE ADMITS HE USED A HOME ON A TREE-LINED COURTYARD IN SPARKS AND SOLD IT THROUGH THE DARK WEB. IT IS REACHED ONLY THROUGH ENCRYPTION. IN AN INVESTIGATION LAST YEAR THEY WERE TOLD OF THE ADVANTAGE OF THE DARK WEB FOR MAKING AND SELLING ILLEGAL DRUGS. >> YOU COULD HAVE SOMETHING SHIPPED TO OUR DROP LOCATION AND REDUCE YOUR RISK DRAMATICALLY NOT ONLY OF BEING CAUGHT BUT OF VIOLENCE. JAYN SWAIN’S ROLE WAS TO USE FAKE PO BOX TO LAUNDER THE PROCEEDS. THE CASE IS THE FIRST OF ITS KIND IN MARYLAND MENTIONED LAST WEEK BY FEDERAL AUTHORITIES AS A WIN AND THE EFFORT TO COMBAT THE OPIOID CRISIS. THE OPERATION CRANKED OUT 24,000 COUNTERFEIT XANAX PILLS AND -- IN AN HOUR. THEN ASK IS LEGALLY PRESCRIBED TO TREAT ANXIETY. IN THIS INVESTIGATION, FEDERAL AUTHORITIES HAVE SEIZED $22 MILLION IN ASSETS, MOST OF IT AND THAT DIGITAL CURRENCY THE

Two Baltimore County men pleaded guilty Tuesday in a multimillion-dollar drug case that involves the dark web.The case is a 21st century version of drug dealing -- not on a street corner or through texting with a dealer, but with a computer and the cyber currency Bitcoin.Robert Swain, 34, of Freeland, left federal court Tuesday convicted of money laundering, which carries a sentence of up to 20 years in prison. Swain declined comment outside the courthouse.Another Baltimore County man, Ryan Farace, 34, of Reisterstown, pleaded guilty in federal court to money laundering conspiracy, admitting that he used a home on a suburban, tree-lined court in Sparks to mask counterfeit Xanax and then sell the drug through the dark web, part of the internet not reached by Google and other search engines, but only through encryption.Authorities said the operation cranked out 24,000 counterfeit Xanax pills an hour.Federal authorities told 11 News last year about an investigation of the advantage of the dark web for making and selling illegal drugs."You could, through a few clicks, have something shipped to a drop location and dramatically reduce your risk not only of being caught but also of violence," threat intelligence analyst CW Walker said.Swain's role was to use fake names and post office boxes to launder the proceeds. The drugs were paid for by buyers with Bitcoin.In the course of the investigation of the case, federal authorities seized $22 million in assets, most of that in Bitcoin.The case is the first of its kind in Maryland and was mentioned last week by federal authorities as a win in the effort to combat the opioid crisis.Xanax is legally prescribed to treat anxiety.As part of his plea agreement, Farace must forfeit assets traceable to the conspiracies, which Farace agreed is at least $5,665,000, as well as 4,000 Bitcoin. Farace must also forfeit his residence, cash, digital currency, bank accounts, vehicles, electronics, jewelry and other items seized by law enforcement during the execution of search warrants on Jan. 16, at locations associated with the conspiracies.Swain must also forfeit at least $30,000, including digital currency and cash held in his name.Farace faces a maximum sentence of five years in prison for conspiracy to manufacture, distribute and possess with the intent to distribute alprazolam.Farace and Swain face a maximum of 20 years in prison for money laundering conspiracy.Farace is scheduled to be sentenced Nov. 30, and Swain is scheduled to be sentenced Jan. 25, 2019.

BALTIMORE —

Two Baltimore County men pleaded guilty Tuesday in a multimillion-dollar drug case that involves the dark web.

The case is a 21st century version of drug dealing -- not on a street corner or through texting with a dealer, but with a computer and the cyber currency Bitcoin.

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Robert Swain, 34, of Freeland, left federal court Tuesday convicted of money laundering, which carries a sentence of up to 20 years in prison. Swain declined comment outside the courthouse.

Another Baltimore County man, Ryan Farace, 34, of Reisterstown, pleaded guilty in federal court to money laundering conspiracy, admitting that he used a home on a suburban, tree-lined court in Sparks to mask counterfeit Xanax and then sell the drug through the dark web, part of the internet not reached by Google and other search engines, but only through encryption.

Authorities said the operation cranked out 24,000 counterfeit Xanax pills an hour.

"You could, through a few clicks, have something shipped to a drop location and dramatically reduce your risk not only of being caught but also of violence," threat intelligence analyst CW Walker said.

Swain's role was to use fake names and post office boxes to launder the proceeds. The drugs were paid for by buyers with Bitcoin.

In the course of the investigation of the case, federal authorities seized $22 million in assets, most of that in Bitcoin.

The case is the first of its kind in Maryland and was mentioned last week by federal authorities as a win in the effort to combat the opioid crisis.

Xanax is legally prescribed to treat anxiety.

As part of his plea agreement, Farace must forfeit assets traceable to the conspiracies, which Farace agreed is at least $5,665,000, as well as 4,000 Bitcoin. Farace must also forfeit his residence, cash, digital currency, bank accounts, vehicles, electronics, jewelry and other items seized by law enforcement during the execution of search warrants on Jan. 16, at locations associated with the conspiracies.

Swain must also forfeit at least $30,000, including digital currency and cash held in his name.

Farace faces a maximum sentence of five years in prison for conspiracy to manufacture, distribute and possess with the intent to distribute alprazolam.

Farace and Swain face a maximum of 20 years in prison for money laundering conspiracy.

Farace is scheduled to be sentenced Nov. 30, and Swain is scheduled to be sentenced Jan. 25, 2019.

34 yr old Baltimore Co man, Robert Swain, one of 2 men pleading guilty today in fed drug case that used the dark web & bitcoin. First case of its kind in MD. Swain admitted to money laundering conspiracy. Drugs made in suburban home in Sparks, Northern Balto Co pic.twitter.com/x33AYiQewa